The Trainer — June 2016

Avoiding Household File Mistakes

In this month’s feature, we discussed how HUD is in the process of reinstating the practice of conducting management and occupancy reviews (MORs). As a result, now is a good time to review your household files and fix any mistakes before your next MOR. We discussed four common mistakes in household files and how to fix them.

Avoiding Household File Mistakes

In this month’s feature, we discussed how HUD is in the process of reinstating the practice of conducting management and occupancy reviews (MORs). As a result, now is a good time to review your household files and fix any mistakes before your next MOR. We discussed four common mistakes in household files and how to fix them.

QUIZ

QUESTION #1

When reviewing a household’s file, you discover that the lease is missing the signature of one of the household members. When asking the household member to sign the lease, you should tell him to date the signature when the other household members signed it. True or false?

a.   True.

b.   False.

QUESTION #2

For which of the following documents that you give a household at lease signing should you keep a signed acknowledgement and/or copy indicating receipt by the tenant?

  1. Resident Rights and Responsibilities Brochure.
  2. Race and Ethnicity Data Reporting Form.
  3. HUD-9887 Fact Sheet.
  4. Lead-Based Paint Disclosure.
  5. EIV & You Brochure.
  6. Fact Sheet: How Your Rent Is Determined.
  7. All of the above.

QUESTION #3

When reviewing household files, you discover that a resident signed the wrong type of HUD model lease for your site’s program. Can you wait until the lease is up for renewal to give the tenant the correct lease?

a.   Yes.

b.   No.

QUESTION #4

After you fix a mistake in a household file, you should also draft a memo to the file explaining what you did. True or false?

a.   True.

b.   False.

ANSWERS & EXPLANATIONS

QUESTION #1

Correct answer: b

False. When the household member signs the lease, tell him to note on the signature page the actual date he signed the lease. Don’t ask him to date the lease when the other household members signed it. If you ask him to do this, he may feel that he can ask you to bend a rule for him in the future.

QUESTION #2

Correct answer: g

As part of the on-site review of the MOR, inspectors will check that your household files contain signed acknowledgements and/or copies of all the listed documents as required indicating receipt by the tenant.

QUESTION #3

Correct answer: b

No. You must ask the household to sign the correct type of lease right away. If you have any questions about following HUD’s rules on implementing lease changes found at HUD Handbook 4350.3, Paragraph 6-12(B) and Paragraph 6-12(D), contact your contract administrator or local HUD office.

QUESTION #4

Correct answer: a

True. You should draft a memo to the file telling contract administrators and local HUD offices who review the file what you did. This will show that you have good quality control over your household files and proactively correct problems in them. Your memo to the file should include: (1) the date you found the mistake; (2) the nature of the mistake; (3) what you did to fix it; (4) any guidance you received from a local HUD office or contract administrator about how to fix the mistake; and (5) how you plan to prevent the mistake from recurring.

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